A couple of weeks ago, THE REVELATOR, in his AI Whispering asked Why does the ProcureTech solution side of the table make billions, while the practitioner side loses trillions (and more)? And it’s a fair question. Because even though the practitioners don’t lose trillions on ProcureTech and ProcureTech consulting (as that’s only in the Billions), they DO lose Trillions on Tech and Tech Consulting that the ProcureTech Consulting and ProcureTech providers SHOULD be helping them save money on.
To be precise, at least 1.8 Trillion is going to be lost by Practitioners this year on Technology and Technology Consulting. Earlier this year, in our post on SaaS Spending, we predicted that at least 1.5 Trillion would be wasted based on total industry spend and an average waste of AT LEAST 30% (due to overspend, unused applications and project failure), but we are now revising that up to 1.8 Trillion based upon a minimum projected spend of 5.4 Trillion based on recent Gartner estimates.
To put this in perspective, only 15 countries have a GDP in excess of 1.8 Trillion! In other words, the total technology spend wasted is greater than the individual GDP of 92% of the countries on earth.
But it gets worse.
If you add up the global revenue of the 23 Big Consultancies, which you will be using for ProcureTech, FinTech, and related consulting, it comes to 551 Billion.
| Accenture | 65 |
| Bain | 7 |
| BCG (Boston Consulting Group) | 13 |
| Capgemini | 25 |
| Cognizant | 20 |
| Deloitte | 67 |
| E&Y | 51 |
| Fujitsu | 26 |
| Genpact | 5 |
| HCL Technologies | 14 |
| Infosys | 25 |
| Kearney | 2 |
| KPMG | 38 |
| McKinsey | 19 |
| Mercer | 2 |
| NTT Data | 30 |
| Oliver Wyman | 3 |
| Publicis Sapient | 18 |
| PWC | 55 |
| Recruit | 23 |
| BAH (Booz Allen Hamilton) | 1 |
| Tata | 31 |
| Wipro | 11 |
And if you add up the global revenues of the 9 big analyst firms, which you will be using for ProcureTech and Fintech advisory, it comes to 51.5 Billion.
| Clarivate | 0.5 |
| Forrester | 0.5 |
| Gartner | 6.5 |
| Hackett | 0.5 |
| IDC | 4.0 |
| IQVIA | 15.0 |
| Kantar | 3.5 |
| Moodys | 7.0 |
| S&P | 14.0 |
That’s a total of 602.5 Billion you’re spending for ProcureTech and FinTech consulting and advisory in return for a loss of roughly 1.8 Trillion!
In other words, for every dollar you spend, you lose three. That’s the reverse of the ROI you should be expecting. You should NOT be investing in Technology or Technology Consulting unless you will get a 3 to 1 return. But what you ARE doing is investing in Technology Consulting and Advisory for a 3 to 1 LOSS! That is the EXACT OPPOSITE of what you should be doing.
So what should you do? STOP!
Or, if you can’t stop, change the game. More to come …